1993 Subaru Impreza T1236724 on 2040-cars

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Toyota to boost its Subaru stake to more than 20%

TOKYO — Toyota Motor Corp plans to raise its stake in Subaru Corp to more than 20% from around 17% now, a deal that would also see the smaller firm invest in Japan's top automaker, two people with direct knowledge of the matter said on Friday. The deal is due to be approved at a Toyota board meeting on Friday, the people said, declining to be identified because the information has not been made public. The investment would come a month after Toyota and another smaller Japanese automaker, Suzuki, said they would take small equity stakes in each other. Such tie-ups highlight how automakers are scrambling to chase scale, manage costs and boost development. Traditional car makers, especially smaller ones like Subaru and Suzuki, are struggling to meet the fast pace of change in an industry being transformed by the rise of electric vehicles, ride hailing and autonomous driving. Toyota's investment is likely to cost more than 70 billion yen ($650 million) based on Subaru's stock market value, said the Nikkei business daily, which first reported the news. Subaru is likely to reciprocate with a stake in Toyota that would roughly equal the value of Toyota's additional investment, one of the people told Reuters. The companies have long worked together on projects such as the Toyota 86 and Subaru BRZ twins. At one time, Subaru built Toyota Camrys in its Indiana plant. Representatives for both Toyota and Subaru said the news was not something that had been announced by their companies. "The plan appears to be to ultimately make Subaru a fully owned subsidiary, to help create a 'mega Toyota.' This is the first step towards that," said Takeshi Miyao, managing director of Carnorama, a consultancy. "It's all about building scale." Subaru is particularly strong in sport-utility vehicles (SUV) and all-wheel-drive technology. The two automakers in June said they planned to jointly develop an electric sport-utility vehicle on a platform produced together, to split costs. Car markers around the world have been joining forces to slash development and manufacturing costs of new technology. Ford Motor Co and Volkswagen AG have said they will spend billions of dollars to jointly develop electric and self-driving vehicles. Toyota seems to be particularly keen to build scale now by investing in smaller, domestic automakers, rather than forging cross-border tie-ups like some of its rivals.

Subaru BRZ with 362-hp, 2.4-liter V8 is the best thing you'll hear today

Whenever the Subaru BRZ and its Toyota twin are talked about, the conversation inevitably turns to whether they would be even better sports coupes with more power. Since their introduction, rumors have popped up suggesting possibilities like more displacement, turbocharging or even a hybrid setup to increase horsepower, but nothing has come to pass. Japanese tuner Jun Auto has decided on a completely different way to boost performance by chucking the 2.0-liter boxer four-cylinder entirely in place of a beautiful 2.4-liter V8. According to the YouTube description for this clip, the engine is based on two of the 1.2-liter inline four-cylinder units from a Kawasaki Ninja ZX-12R motorcycle. The result is a mill that makes a claimed 362 horsepower and revs to over 11,000 rpm. It also sounds like automotive nirvana. Finished in an eye-catching contrast of bright yellow paint with white wheels and a black wing at the back, the V8 BRZ certainly doesn't hide its performance, either. This video's text is in Japanese, but knowledge of the language isn't necessary to understand what's going on.

We drive a Subaru to one of the world's largest glaciers

Now that we're back from Patagonia, senior video producer Chris McGraw is emptying out his camera memory and putting together a number of short clips showing the various places we visited along the journey. (Yes, we wanted to upload these last week, but had little to no wifi connectivity along the way.) In this latest video, we bring you the sights from our trip to the Perito Moreno Glacier in Argentina, and a look at the roads leading into Chile. Our chariot for what was actually Day 3 of the trip was a Subaru Forester, which had no problem tackling the rough dirt and gravel roads through Patagonia, and was an excellent cruiser for the twisty paved roads leading into the Andes mountain range. The Perito Moreno Glacier is massive – roughly three times the size of Manhattan – and is one of only a few glaciers in Patagonia that's still growing. It is truly an awesome sight – one that's hard to describe, because when you see it, you just sort of stand there, mouth agape, fascinated. We've got a few more clips in the works, including our full Patagonia feature video. Stay tuned, and enjoy the view.